Marmota Energy - MEU

[Huang Chung]

Marmota Energy is a junior explored based in, and focused on mineral exploration in South Australia (particularly uranium). Market cap at the current price of 14c is around $17m, with around half of that accounted for in cash. Currently doing a capital raising at 14c which may or may not get taken up based on the low share price. Comes from the Beach/Ramelius/Monax stable, and has various JVs in place with Monax in particular.

I've taken a small stake as a punt on a couple of their projects that look interesting.

1. Melton (right to earn 50%). MEU have tenements along strike north and south of Rex Minerals Hillside copper project. Melton is Rex has run from being a penny stock to around $2 based on their copper results at Hillside. Targets are currently being generated for drilling next February.

http://www.asx.com.au/asx/statistics...idsId=01010738

2. Mulyungarie/Junction Dam (right to earn 51%). Greenfield uranium find with similarities to the nearby Honeymoon Well operation. Still early days, but some encouraging interecepts. More drilling results due soon.

http://www.asx.com.au/asx/statistics...idsId=01009660

MD Dom Calandro and board member Dr Neville Alley look particularly well equipped to bring a high level of technical know how and local knowledge to the company.

Mr Dom Calandro, Managing Director, has 13 years experience in the management, processing, and provision of geophysical data and information with a strong record of seamless project outcome delivery. He has significant geoscience expertise, with experience advising mineral explorers on appropriate geophysical methods and tools to use in exploration for a variety of commodities. He has most recently held the position of Chief Mineral Geophysicist for the South Australian Government where he was responsible for the design and management of a variety of large-scale government geophysical acquisition programs, which were successfully completed as part of the SAEI and TEISA initiatives. As Manager of the geoscience data and information systems for the South Australian Government he contributed to the reduction of exploration risk for mineral explorers in the State. Dom was also the manager of the highly successful PACE initiative, which featured a collaborative drilling program, large-scale geophysical acquisition projects and innovative data management and delivery improvement programs.

Dr Neville F Alley, Executive Director, is an internationally known earth science researcher and has wide experience in geological mapping and research in Australia and overseas. He formulated the recent research effort to unravel palaeochannel systems in southern Australia. In 2004 he was awarded the Verco Medal for his contribution and leadership in the earth sciences and the Public Service Medal (PSM) in 2005 for outstanding contribution to geology and the minerals industry. He has extensive experience at senior levels in Government in Canada and as Director, Minerals, MESA and PIRSA, has a high level understanding of Government policy, regulation and legislation. He was a Member of the Resources Taskforce and made a significant contribution in setting the SA Government's strategies for reinvigorating the minerals industry and led the development of Government initiatives such as TEISA and PACE. Neville has worked closely with Aboriginal people and the community in developing a higher profile for the resources industry. He is a Director of Monax Mining Limited, Beach Petroleum Limited, InterMet Resources Limited and a Visiting Research Fellow, School of Earth and Environmental Sciences, The University of Adelaide.

Without a resource of any kind, this stock is just a punt on some exploration success. Still, its cheap enough, so plenty of upside is possible should they get lucky.